Selecting Car Insurance That Covers All Your Needs

Should you ever have an accident, your car insurance is there to give you a degree of financial protection. Vehicle insurance is a necessary expense which all motorists must take into account. If you have an accident in your car, you will be glad that you invested in good car insurance for the financial protection that this will give you.

Repairs to your own car after an accident, legal fees and liability for property will often not be covered by a bog-standard car insurance policy. Bolt-on niche insurance products such as inconvenience cover, gap insurance and even legal protection insurance can prove to be invaluable additions to your comprehensive car insurance to ensure an accident does not end up costing you more than you can afford should the worst happen.

Choosing the right car insurance product will protect you, your vehicle, and other parties in the long run. If you are planning to drive in the UK, you are required to purchase car insurance. Your level of protection will depend on the type of car insurance policy you choose to take out.

WHY YOU SHOULD SHOP AROUND FOR NEW CAR INSURANCE

Shopping around for car insurance is very important for several reasons: • You may find better quotes • Depreciation will affect the value of your car • Your circumstances may have changed • Your car finance may put your car at risk • Personal effects loss may be covered by some insurers • Some insurers may include breakdown cover • You may find an insurer offering inclusive legal cover • You could find a policy which includes cover for a second car • You may be offered an introductory discount

Just because you have used the same insurance company or insurance broker for several years, does not mean you are getting the best deal. It really only means just that - you have used the same insurance company or insurance broker for the past several years.

A good insurance broker is most likely to get you the best coverage if they manage your full insurance portfolio as they then know your history and needs. This is also the case with car insurance as they can often consolidate your insurance needs into an all inclusive package which most insurance companies only make available to brokers.

The value of your car will depreciate according to the amount of use as well as it's age. Your new car begins to depreciate as soon as you put the first few miles on the clock. Every year that you own the same car, its value decreases. You should insure accordingly by getting the same coverage at a lower price. This makes perfect sense. Check the value of your car against its blue book value rather than the price you paid - your broker can do this for you. The reason is that even fully comprehensive car insurance policies do not cover a vehicle to the purchase price, but rather the blue book value. So make sure that that is what you declare the car’s value to be. Generally speaking, a more expensive car will cost more to insure. In rare cases the insurance company may offer a replacement car of the exact model or spec after an accident. There is however an insurance product called Vehicle Replacement Insurance which does just that! Click on the link to find out how it works in more detail.

Your personal circumstances may be different that at your last renewal. Perhaps you do not drive as far or often as you did, or perhaps your children have grown and want the keys to the car. Get insured according to any changes in circumstances - no matter how small you think they are. You can get a significant discount from your insurer if you are a low mileage driver.If you wait until renewal time it probably won't be that expensive to add additional drivers to your car insurance policy. Insurers may charge you an administration cost for adding additional drivers, but if you wait until it's time to renew you may not incur this fee.

SO WHICH IS THE BEST CHOICE OF CAR INSURANCE COVER?

Insurance cover in the UK falls into three different categories.

 1. In many countries including the UK, Third Party Insurance is mandatory. It gives you cover against a claim against you for damage to another car, its driver, or passengers should you be in an accident. This type of insurance covers your liabilities in the event of damage to another vehicle or person in an accident. The insured is not protected against bodily injury or damage to their own vehicle with this type of policy. You will not be reimbursed for repair costs with a third party only insurance policy.

2. Third Party, Fire and Theft Insurance will cover the benefits of third party insurance and includes any financial loss to the insured vehicle caused by fire or theft. The average driver may find this the best type of cover, especially for a vehicle which doesn't have a very high market value. You must have a fully comprehensive policy for a leased or financed car.

3. Fully Comprehensive Insurance offers the widest coverage. It provides the basic insurance of third party, fire and theft and covers damage to the insured vehicle and any bodily injury suffered by the policyholder in an auto accident. A fully comprehensive policy is a better choice if the value of the car is more than you could afford if you needed to replace it. Search online for products like Vehicle Replacement Gap insurance or Finance Gap - these will close the gap between what your payout would be and the cost of buying a new car in the event of an insurance write-off.

Many factors affect car insurance and most insurance companies offer a range of secondary covers to meet the varied and specialized needs of the policyholder.

FACTORS AFFECTING CAR INSURANCE

1. The Policyholder• Age of the policyholder • Gender of the policyholder • Your marital status • Your postcode is a factor • How large the car and engine are • The cost of replacing the vehicle • Any modifications that have been made to the vehicle by its owner

A younger less experienced driver will pay a higher insurance premium than someone with several years driving experience.

A married person is considered more responsible for their actions than a person is with no commitments. It stands to reason that married men with kids have more responsibilities than single men and the insurance companies therefore consider married men a lower risk category.

Where a person lives also affects the insurance cost. Motorists living in rural locations and in areas with a low crime rate are more likely to get a lower insurance premium than those living in cities.

A powerful car is more likely to lose control at the hands of younger drivers: expensive cars cost a lot to replace if scrapped and should they simply require repairs the sum of the replacement parts often costs more than the used car’s value, making more powerful cars very expensive to ensure.

A modified car could have had safety compromised in terms of improved performance and different handling which could make the car unpredictable. An increase in insurance premiums should be expected with car modifications, as these represent an increased risk to the insurer.

2. Driver History • Years of driving experience • Claims history • Driving convictions • Annual mileage

The number of years a person has been driving suggests their understanding of the rules of the road, shows the driver has built up experience of driving under varied driving conditions and has attained a certain level of confidence while behind the wheel. Insurance companies base these assumptions on the policyholder's claims history over the last five years. Driving convictions such as speeding, dangerous driving or drink diving will affect the premium. This does not include parking violations.

Your annual mileage is a factor too. Your chances of being involved in an accident are increased the more time your car spends on the road.

3. Vehicle History • Current vehicle value • Owned, leased or financed • Car make and model • Engine size and performance • Modifications to the vehicle

If the vehicle has a low book value, it may not seem to be cost effective to pay for comprehensive insurance; however this is not necessarily the case. Often as the named driver with many years of no claims under the belt, fully comprehensive motor insurance could cost no more than third party insurance, but with additional perks. Additional benefits to your policy can often be added at little extra cost when buying online. Fully comprehensive insurance cover will be required for leased or financed vehicles. You need to be able to reimburse the leasing or finance company for any damage to the car. Comprehensive insurance will cover this.

There may be other benefits included in your car insurance policy, which are not always necessary but sometimes advisable:

 • Breakdown insurance • Provision of a courtesy car while yours is in the garage • Roadside and/or breakdown insurance cover • Some insurers may offer you legal cover included in your policy • Windscreen cover - repair or replace • Protecting your no claims bonus • Compulsory or voluntary deductible amount

Choosing the correct insurance and getting the best quote can be daunting as there are so many variables to consider. Good websites make it easy to get quotes with little aggravation. An insurance aggregator website is a good place to get you started. Online insurance aggregator websites are generally very easy to use. You'll only need to fill out one questionnaire so that the market can be searched on your behalf. Once they have collected all the quotes, you will be able to compare insurance policies against each other, save and email your quote to your personal email address, go back and change your options to include or reduce the benefits you may be considering and - when you're happy - buy online. It's always a good idea to find out if your broker can get you a better deal first, so keep him posted on your findings. When comparing quotes online, remember to do so on a like-for-like basis. This may not always be as simple as you at first think. Good luck on finding the best policy for your needs.